Large Store Ltd. is a Canadian controlled private corporation. Its Net Income For Tax Purposes is...
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Large Store Ltd. is a Canadian controlled private corporation. Its Net Income For Tax Purposes is 652,000fortheyearending December 31, 2020, allofwhichisactive businessincome, exceptfor21,000 in foreign source non-business income. Ten percent of this amount was withheld in the foreign jurisdiction, and the corporation receives a foreign tax credit against federal Tax Payable that is equal to the amount withheld. The corporation's only deduction in the calculation of Taxable Income is for a non-capital loss carry forward of 415, 000. The corporationhadTaxable CapitalEmployedIn Canadaof 12,950,000 for 2019, and $13,100,000 for 2020. It is not associated with any other corporation. Required: Determine the amount of Large Store Ltd.'s small business deduction for the year ending December 31, 2020. Large Store Ltd. is a Canadian controlled private corporation. Its Net Income For Tax Purposes is 652,000fortheyearending December 31, 2020, allofwhichisactive businessincome, exceptfor21,000 in foreign source non-business income. Ten percent of this amount was withheld in the foreign jurisdiction, and the corporation receives a foreign tax credit against federal Tax Payable that is equal to the amount withheld. The corporation's only deduction in the calculation of Taxable Income is for a non-capital loss carry forward of 415, 000. The corporationhadTaxable CapitalEmployedIn Canadaof 12,950,000 for 2019, and $13,100,000 for 2020. It is not associated with any other corporation. Required: Determine the amount of Large Store Ltd.'s small business deduction for the year ending December 31, 2020.
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The amount of Large Store Ltd s small business deduction for the year ending Decembe... View the full answer
Related Book For
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
Posted Date:
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